Radian Corporation provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc.. The company was founded in 1977 and is based in Philadelphia, Pennsylvania.
RDN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RDN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Radian Group Inc ranked in the 92th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3211.83%. The most interesting components of our discounted cash flow analysis for Radian Group Inc ended up being:
In the past 5.01 years, Radian Group Inc has a compound free cash flow growth rate of 0.78%; that's better than 92.9% of cash flow producing equities in the Financial Services sector, where it is classified.
Radian Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 7.8% of tickers in our DCF set.
RDN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 7.8% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ELVT, NOAH, NMIH, GECC, and TREE can be thought of as valuation peers to RDN, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
PHILADELPHIA--(BUSINESS WIRE)--Home prices across the United States continued to climb in August, rising at an annualized 8.6 percent from the prior month, the second highest month-over-month rate of 2020, according to Radian Home Price Index (HPI) data released today by Red Bell Real Estate, LLC, a Radian Group Inc. company (NYSE: RDN). The Radian HPI is the most comprehensive and timely measure of U.S. housing market prices and conditions. The Radian HPI has risen at an annualized rate of 6.9
Radian Guaranty, the mortgage insurance subsidiary of Radian Group (RDN), reported new defaults on 6,173 loans in August, down from 8,477 in July.Cures dipped to 8,670 from 10,678 in July.Claims paid reduced to 63 from 92.August commenced with primary default inventory of 67,433 loans and ended the month with 64,888 defaults.The total new...
PHILADELPHIA--(BUSINESS WIRE)--Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today released monthly operating statistics related to the credit performance of its insured portfolio for the month of August 2020. The information includes total new primary defaults, which include defaults under forbearance programs in response to the COVID-19 pandemic, as well as cures, claims paid and rescissions/denials. The information regarding new defaults and cures is reported
PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE:RDN) announced today that the company’s Board of Directors approved a regular quarterly dividend on its common stock in the amount of $0.125 per share, payable on September 4, 2020, to stockholders of record as of August 24, 2020. About Radian Radian Group Inc. (NYSE:RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehens
Radian Group Inc. (RDN) Q2 2020 Earnings Conference Call Aug 10, 2020, 10:00 AM ET Company Participants John Damian - SVP of IR Rick Thornberry - CEO Frank Hall - CFO Derek Brummer - President of Radian Mortgage Conference Call Participants Jack Micenko - SIG Bose George - KBW Mihir...